Financial planning now that retired

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Topic Author
Lalamimi
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Joined: Mon Jun 24, 2019 4:22 pm

Financial planning now that retired

Post by Lalamimi » Mon Jun 24, 2019 8:04 pm

Hope I am doing this correctly. We have met with 3 "Wealth Management" parties and got 3 different suggestions for direction to go. The posts here confirm we do not need to pay their 1% of our portfolio fee. But we could use some direction on our investments with Edward Jones.
I also have an account with Fidelity and could purchase ETFs once I figure those out.
Using the guide I have copied our investments. I was laid off last March, and we sold a house on some acreage, thus have been able to delay drawing social security. Thus, no income this year, but too much cash in our Money Market. Thoughts on converting some from his IRA to a Roth during low tax bracket year?
Any guidance is appreciated!

Emergency Funds: 6 mos Yes
Debt: NONE
Tax Filing Status: Married Filing Jointly
Tax Rate: Eff 8% Federal, 0 state
Texas
65 and 67 – both retired - not drawing Social security yet, maybe in January then he can draw and I can restrict and draw 1/2 of his for 4 years. ($50K yr)
Low 7 figures portfolio
Current retirement assets:
Taxable
15% cash (for living expenses for 2019 and future investing)
His IRAs at Edward Jones
33% #1 IRA ( $1,000 fee annually) SELECT RETIREMENT
shares:
ABALX 2,812.461
CAIBX 595.467
CWBFX 290.470
CWGIX 461.125
INPAX 3,055.629
AEPGX 227.821
ANCFX 523.126
AMECX 2,375.544
IGAAX 22.744
EMAAX 1,352.993
GOLDMAN SACHS GROWTH & INCOME STRATEGY CL A GOIAX 1,044.907
GOLDMAN SACHS INTERNATIONAL EQUITY INCOME CL A GSAKX 1,355.731
NATIXIS U.S. EQUITY OPPORTUNITIES CL A NEFSX 1,770.419

14% IRA #2 (fee $1,000 per year) Edward Jones Guided Solutions™ Flex Account
DODIX 915.068
KLCSX 427.386
SGIIX 101.196
HHHFX 181.813
OIGIX 105.187
OCIIX 828.444
JHBSX 752.529
JLCWX 244.299
JIGTX 300.624
MWTSX 1,329.164
NBGIX 138.281
OANIX 148.305
TBCIX 129.344
PDGIX 266.095
VEVRX 124.770
AGG 108.045
GDX 155.000
VYM 135.24

10% HER IRA (Edward Jones Guided Solutions™ Flex Account $1,200 annual fee
shares:
DEMIX 142.774
DODIX 893.414
KLCSX 344.098
SGIIX 126.558
LVLYX 294.513
OCIIX 233.519
JHBSX 594.711
JEVRX 513.559
JIGTX 209.597
MWTSX 1,158.235
TBCIX 129.568
VEVRX 93.358
VSOIX 169.481
ISHARES CORE US AGGREGATE BOND ETF AGG 67
VANECK VECTORS GOLD MINERS EXCHANGE TRADED FUND GDX 158.000
VANGUARD HIGH DIVIDEND ETF VYM Growth & Income 156.216

28% HER 401(k) with Fidelity
VX VANG Target Ret 2015 7,268 (1.30 per $1K)
VANG SM CAP IDX ADM 404 (.50 per $1K)
FXAIX FID 500 INDEX 530 (.15 per $1K)
FCNKX FID CONTRAFUND K 6,034 (7.30 per $1K) (Yikes!)
CT Stable Inc II-0 6,286 Thank you!
Last edited by Lalamimi on Mon Jun 24, 2019 8:32 pm, edited 1 time in total.

neilpilot
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Re: Financial planning now that retired

Post by neilpilot » Mon Jun 24, 2019 8:16 pm

The number and type of investments are overly complex, but that's what you get at Edward Jones. I'm not going to give you any specific advice, except to point out that if you truly have near zero income this year you should seriously consider large Roth conversion, and pay any tax owed out of your MM account.

Topic Author
Lalamimi
Posts: 26
Joined: Mon Jun 24, 2019 4:22 pm

Re: Financial planning now that retired

Post by Lalamimi » Mon Jun 24, 2019 8:34 pm

Thank you!

Katietsu
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Re: Financial planning now that retired

Post by Katietsu » Mon Jun 24, 2019 8:49 pm

The good news is that this is all in retirement accounts. Therefore, you can sell everything and reinvest in a simpler portfolio with lower ER’s without any tax consequences. What type of wealth management advisors have you been meeting with? Any that have proposed a simpler low cost portfolio? Any that have advised you on the best way to keep taxes low over time? Any that have suggested delaying social security for the highest earning, if appropriate?

Maybe find a good tax preparer who likes to do planning. Consider Roth conversions. Delaying social security. Spending from IRA vs taxable. Remember to stay away from IRMAA.

I would not worry about your current portfolio. Focus on your future portfolio.

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calmaniac
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Re: Financial planning now that retired

Post by calmaniac » Mon Jun 24, 2019 9:07 pm

Katietsu wrote:
Mon Jun 24, 2019 8:49 pm
The good news is that this is all in retirement accounts. Therefore, you can sell everything and reinvest in a simpler portfolio with lower ER’s without any tax consequences.
+1

Island John
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Re: Financial planning now that retired

Post by Island John » Mon Jun 24, 2019 9:39 pm

I agree with the previous posters that you have a very complex portfolio. As has already been said, you should look toward simplifying your investments and transitioning to funds with low expense ratios. Since you are transitioning to retirement, I would highly recommend the book The Bogleheads' Guide to Retirement Planning. It will help you to clarify your goals and options. It's available on Amazon here: https://www.amazon.com/Bogleheads-Guide ... 192&sr=8-1

Topic Author
Lalamimi
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Joined: Mon Jun 24, 2019 4:22 pm

Re: Financial planning now that retired

Post by Lalamimi » Tue Jun 25, 2019 2:52 pm

Thank you both. We met with Roberts Wealth Management (broker), Creative Planning (fiduciary) and an Ameriprise fiduciary/broker (annual fee and the management fee). None suggested delaying Social Security, one said DO NOT convert to a Roth as we would "never spend that money", Two said to convert this year (and some next year) for taxes was a good idea, one wanted to sell us an annuity for 1/3 of our investments, he also had his own mutual funds to invest in. Without signing on they won't tell you how to invest of course. Several said too much in American funds (with a laugh to Ed Jones).

The average total annual expense for the Edward Jones accounts is .05%. (the older IRA has a smaller fee so it offsets the other two that are 1% each).
Thought maybe convert 1/2 of his smaller IRA to a Roth and move it to a Fidelity account (after I research their fee).
All the planners wanted 1% up to 1.40%, which would be over $10,000 a year.
I am rebalancing my 401(k) as to their fees and we are going to call our Edward Jones advisor to see about all the duplication in our 2 smaller IRAs.
I am also looking into investing with Fidelity in their ETFs using some of our money market account and the money he converts to a Roth.
Yes, since we just went on Medicare, I am paying close attention to IRMMA!

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Duckie
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Re: Financial planning now that retired

Post by Duckie » Tue Jun 25, 2019 5:09 pm

Lalamimi wrote:But we could use some direction on our investments with Edward Jones. I also have an account with Fidelity and could purchase ETFs once I figure those out.
My advice? Liquidate and transfer His IRA #1, His IRA #2, and Her IRA from Edward Jones to Fidelity. Combine his two IRAs into one.

What are all the options in her 401k? List the fund names, ticker symbols, and plan expense ratios.

How much of the 15% taxable is for living expenses and how much is for investing?

What is your desired Asset allocation?

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Wiggums
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Re: Financial planning now that retired

Post by Wiggums » Tue Jun 25, 2019 6:02 pm

Duckie wrote:
Tue Jun 25, 2019 5:09 pm
Lalamimi wrote:But we could use some direction on our investments with Edward Jones. I also have an account with Fidelity and could purchase ETFs once I figure those out.
My advice? Liquidate and transfer His IRA #1, His IRA #2, and Her IRA from Edward Jones to Fidelity. Combine his two IRAs into one.

What are all the options in her 401k? List the fund names, ticker symbols, and plan expense ratios.

How much of the 15% taxable is for living expenses and how much is for investing?

What is your desired Asset allocation?
I agree. This is a very good option.

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mhadden1
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Re: Financial planning now that retired

Post by mhadden1 » Tue Jun 25, 2019 6:33 pm

Lalamimi wrote:
Mon Jun 24, 2019 8:04 pm
I also have an account with Fidelity and could purchase ETFs once I figure those out.
I agree with a previous suggestion that this is a good route. Fidelity has many inexpensive index funds you can use, some with literally no fees! What could be better? I would roll over the IRA accounts to Fidelity, and reduce investment fees to an imperceptible amount.

Regarding Roth conversions, if your income is low enough to pay the tax in your 0% and 10% brackets I would also do that. A lot of people also like the idea of converting in the 12% bracket since current law takes the 12% bracket back to 15% down the road.

Edited a typo.
Oh I can't, can I? That's what they said to Thomas Edison, mighty inventor, Thomas Lindberg, mighty flyer,and Thomas Shefsky, mighty like a rose.

DesertDiva
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Re: Financial planning now that retired

Post by DesertDiva » Tue Jun 25, 2019 7:31 pm

If you already have a relationship with Fidelity, why not go to a local office and meet with an advisor? It couldn't be any worse than the pain you've already endured.

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onthecusp
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Re: Financial planning now that retired

Post by onthecusp » Tue Jun 25, 2019 8:11 pm

DesertDiva wrote:
Tue Jun 25, 2019 7:31 pm
If you already have a relationship with Fidelity, why not go to a local office and meet with an advisor? It couldn't be any worse than the pain you've already endured.
That is pretty much how I consolidated my accounts at Fidelity. I listened politely to the minimal investing advice I received and closely to the facts of how to get my accounts away from Ameriprise etc. and into appropriate accounts at Fidelity. It went very smoothly if not instantly (Ameriprise drug their feet quite a long time and required prompting).

Now Fidelity seems to be promoting a more hands on adviser, but since finding Bogleheads I don't need that sort of help so I have just said no thanks. Good luck!

tibbitts
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Re: Financial planning now that retired

Post by tibbitts » Tue Jun 25, 2019 8:15 pm

DesertDiva wrote:
Tue Jun 25, 2019 7:31 pm
If you already have a relationship with Fidelity, why not go to a local office and meet with an advisor? It couldn't be any worse than the pain you've already endured.
Because for lots of us it's a 200+ mile round-trip to the "local" office.

GuyInFL
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Re: Financial planning now that retired

Post by GuyInFL » Tue Jun 25, 2019 8:58 pm

tibbitts wrote:
Tue Jun 25, 2019 8:15 pm
DesertDiva wrote:
Tue Jun 25, 2019 7:31 pm
If you already have a relationship with Fidelity, why not go to a local office and meet with an advisor? It couldn't be any worse than the pain you've already endured.
Because for lots of us it's a 200+ mile round-trip to the "local" office.
Probably a worthwhile trip!

Luckywon
Posts: 490
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Re: Financial planning now that retired

Post by Luckywon » Tue Jun 25, 2019 9:21 pm

Duckie wrote:
Tue Jun 25, 2019 5:09 pm
My advice? Liquidate and transfer His IRA #1, His IRA #2, and Her IRA from Edward Jones to Fidelity. Combine his two IRAs into one.
OP, I'm surprised at the restraint with which you have been kindly advised to move your IRA's from Edward Jones to Fidelity. Ending your relationship with EJ is the single best thing you can do for your retirement and not doing so would be a very very costly mistake.

Caution: You should transfer the positions in kind (i.e. do not liquidate at Edward Jones before transferring) and then liquidate at the new brokerage. The reason for this is that Edward Jones may charge you high trading fees to liquidate your positions. Their commission schedule should shock the conscience of any decent person ($455 for a $25,000 trade!). I've posted a link to it below, direct from EJ. It could be that since you are paying fees in the IRA "Guided Solutions" that they are waiving these but I would not be surprised if they charge their regular commission schedule for trades initiated by you for the purpose of liquidation.

Some of the funds may not be able to be transferred in kind. Those may have to be liquidated at EJ before transfer (ouch!).

Initiate the transfer from Fidelity, they will assist you.

EJ commission schedule:

https://www.edwardjones.com/images/ETY-1714E-A-MA.pdf

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Tyler Aspect
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Re: Financial planning now that retired

Post by Tyler Aspect » Wed Jun 26, 2019 2:16 am

Other people have commented about the possibility of transferring from Edward Jones to Fidelity. I would like to mention the possibility of transferring to Vanguard, because Vanguard's offering of balanced funds and money market funds are somewhat better than Fidelity.

50% stock / 50% bond is a common asset allocation target for retired investors. You could meet that target with balanced funds. Within an IRA account you could hold half in Vanguard LifeStrategy Conservative Growth, half in Vanguard Balanced Index. That would be a 50% stock / 50% bond position.

You could do the same thing for the taxable account as well, for simplicity: half LifeStrategy Conservative Growth / half Vanguard Balanced Index. Keep 4% of your overall asset in a money market fund for yearly expense.

For the 401k account if you put everything in a target retirement fund that is the closest to the current year, then it should hover around 50% stock / 50% bond as well.
Past result does not predict future performance. Mentioned investments may lose money. Contents are presented "AS IS" and any implied suitability for a particular purpose are disclaimed.

Topic Author
Lalamimi
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Joined: Mon Jun 24, 2019 4:22 pm

Re: Financial planning now that retired

Post by Lalamimi » Wed Jun 26, 2019 10:03 am

Luckywon wrote:
Tue Jun 25, 2019 9:21 pm
Duckie wrote:
Tue Jun 25, 2019 5:09 pm
My advice? Liquidate and transfer His IRA #1, His IRA #2, and Her IRA from Edward Jones to Fidelity. Combine his two IRAs into one.
OP, I'm surprised at the restraint with which you have been kindly advised to move your IRA's from Edward Jones to Fidelity. Ending your relationship with EJ is the single best thing you can do for your retirement and not doing so would be a very very costly mistake.

Caution: You should transfer the positions in kind (i.e. do not liquidate at Edward Jones before transferring) and then liquidate at the new brokerage. The reason for this is that Edward Jones may charge you high trading fees to liquidate your positions. Their commission schedule should shock the conscience of any decent person ($455 for a $25,000 trade!). I've posted a link to it below, direct from EJ. It could be that since you are paying fees in the IRA "Guided Solutions" that they are waiving these but I would not be surprised if they charge their regular commission schedule for trades initiated by you for the purpose of liquidation.

Some of the funds may not be able to be transferred in kind. Those may have to be liquidated at EJ before transfer (ouch!).

Initiate the transfer from Fidelity, they will assist you.

EJ commission schedule:

https://www.edwardjones.com/images/ETY-1714E-A-MA.pdf
Great to hear! There are no extra fees to transfer, sell, etc. with EJ. I will set up a meeting with the local Fidelity Adviser (almost did it 5 months ago before got involved with the Wealth Managers.

Soon2BXProgrammer
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Re: Financial planning now that retired

Post by Soon2BXProgrammer » Wed Jun 26, 2019 10:05 am

If you want help. look at XY planning network, and look for a planner that provides planning on an arrangement that you can agree with. (Fix fee, one time fee, monthly retainer, AUM, etc)

*disclaimer* at some point in the future, i will probably be an advisor that is affiliated with XYPN, currently not an advisor but working towards that.

Luckywon
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Re: Financial planning now that retired

Post by Luckywon » Wed Jun 26, 2019 10:18 am

Lalamimi wrote:
Wed Jun 26, 2019 10:03 am
Luckywon wrote:
Tue Jun 25, 2019 9:21 pm
Duckie wrote:
Tue Jun 25, 2019 5:09 pm
My advice? Liquidate and transfer His IRA #1, His IRA #2, and Her IRA from Edward Jones to Fidelity. Combine his two IRAs into one.
OP, I'm surprised at the restraint with which you have been kindly advised to move your IRA's from Edward Jones to Fidelity. Ending your relationship with EJ is the single best thing you can do for your retirement and not doing so would be a very very costly mistake.

Caution: You should transfer the positions in kind (i.e. do not liquidate at Edward Jones before transferring) and then liquidate at the new brokerage. The reason for this is that Edward Jones may charge you high trading fees to liquidate your positions. Their commission schedule should shock the conscience of any decent person ($455 for a $25,000 trade!). I've posted a link to it below, direct from EJ. It could be that since you are paying fees in the IRA "Guided Solutions" that they are waiving these but I would not be surprised if they charge their regular commission schedule for trades initiated by you for the purpose of liquidation.

Some of the funds may not be able to be transferred in kind. Those may have to be liquidated at EJ before transfer (ouch!).

Initiate the transfer from Fidelity, they will assist you.

EJ commission schedule:

https://www.edwardjones.com/images/ETY-1714E-A-MA.pdf
Great to hear! There are no extra fees to transfer, sell, etc. with EJ. I will set up a meeting with the local Fidelity Adviser (almost did it 5 months ago before got involved with the Wealth Managers.
Excellent! One thing I forgot to mention is that you should ask your fidelity advisor whether they will give you an incentive bonus for moving new funds into fidelity. I just checked and fidelity right now is only offering free trades as an incentive but sometimes brokerages will match existing offers. Around 0.25 % of transferred amount is fairly standard. For example, Etrade is currently offering $600 for a $250k deposit. Google "current brokerage incentives" to find websites that aggregate information on current offers from the major brokerages. At the minimum, get a commitment from fidelity to reimburse any transfer fees that Etrade charges. I know you stated above that EJ does not have fees to transfer/sell but I would not be surprised if they come up with some nasty surprises once it is apparent to them they are losing you.

Jack FFR1846
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Re: Financial planning now that retired

Post by Jack FFR1846 » Wed Jun 26, 2019 10:31 am

You mention both Edward Jones and Ameriprise.

The biggest crooks in the financial industry.

Moving literally anywhere else would be a good move.
Bogle: Smart Beta is stupid

Topic Author
Lalamimi
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Re: Financial planning now that retired

Post by Lalamimi » Wed Jun 26, 2019 6:59 pm

Soon2BXProgrammer wrote:
Wed Jun 26, 2019 10:05 am
If you want help. look at XY planning network, and look for a planner that provides planning on an arrangement that you can agree with. (Fix fee, one time fee, monthly retainer, AUM, etc)

*disclaimer* at some point in the future, i will probably be an advisor that is affiliated with XYPN, currently not an advisor but working towards that.
thank you!

Bonehead3
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Re: Financial planning now that retired

Post by Bonehead3 » Wed Jun 26, 2019 8:32 pm

Jack FFR1846 wrote:
Wed Jun 26, 2019 10:31 am
You mention both Edward Jones and Ameriprise.

The biggest crooks in the financial industry.

Moving literally anywhere else would be a good move.
EJ is a well respected firm on Wall St. They have reps throughout the US. They meet people in their living rooms to ...steer their money to themselves. They sell and buy and churn. As a former rep, I"m a dime a dozen. They targeted former military years ago and I bit. I could not take their "sell one bond and sell one stock" and "ask the 'money due' question" for CD maturities. They don't care about people but they do care about people's money. The bottom line: stay away from all "advisers" because it's so easy, especially today, to self-direct your portfolio. They like to talk about their research and firm behind them. Bull. Vanguard, Fidelity, Schwab....all will do a better job and cheaper than these clowns. Most will even give free advice.

Topic Author
Lalamimi
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Joined: Mon Jun 24, 2019 4:22 pm

Re: Financial planning now that retired

Post by Lalamimi » Thu Jun 27, 2019 9:05 am

Bonehead3 wrote:
Wed Jun 26, 2019 8:32 pm
Jack FFR1846 wrote:
Wed Jun 26, 2019 10:31 am
You mention both Edward Jones and Ameriprise.

The biggest crooks in the financial industry.

Moving literally anywhere else would be a good move.
EJ is a well respected firm on Wall St. They have reps throughout the US. They meet people in their living rooms to ...steer their money to themselves. They sell and buy and churn. As a former rep, I"m a dime a dozen. They targeted former military years ago and I bit. I could not take their "sell one bond and sell one stock" and "ask the 'money due' question" for CD maturities. They don't care about people but they do care about people's money. The bottom line: stay away from all "advisers" because it's so easy, especially today, to self-direct your portfolio. They like to talk about their research and firm behind them. Bull. Vanguard, Fidelity, Schwab....all will do a better job and cheaper than these clowns. Most will even give free advice.
I
thank you. My cousin was with EJ too. Just told me same thing. I will talk to Fidelity next week, and maybe even look at Schwab. I can't do it on my own, do need some advise to get it all set up.

bloom2708
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Re: Financial planning now that retired

Post by bloom2708 » Thu Jun 27, 2019 9:19 am

Welcome!

Spend 30 or 60 or 90 days here "reading up". Go slow. A plan will form. Fees are the key.

I think you need to dig deeper on your Edward Jones fees. I think you are (way) under estimating the fees. You should write down the Expense Ratio and 12b-1 fees for each fund. Also note if you have Class A shares or Class C shares. Guided Solutions has a (typical) 1.3% Assets Under Management fee.

Many of us our former Edward Jones escapees. I did a 3.5 year sentence and escaped fairly early. The fees and their long term affects will blow your mind over 30, 40 years.

It may be best to make a clean break. We chose Vanguard and now everything is consolidated there. Our all up expense ratio is .06%. Essentially using a 3 fund style, total market approach. Rollover IRAs, Roth IRAs, Taxable account and 3 "College" taxable accounts are all at Vanguard.

Traditional and Roth IRAs are "easy" to fix because they are inside a tax-sheltered vehicle. No tax consequences for exchanging/selling.

This place exists to help you Do It Yourself. Some do prefer getting advice, but it is difficult to find. Once you know enough to double check what the advisor is selling, then you no longer need the advice. You know it yourself. A true dilemma. Learn it yourself like many of us have and you no longer need to pay the advisor. It is best to just go slow and learn at this point so you don't go from Edward Jones to another firm that is exactly the same with high fees and too complex a portfolio.

We have 5 unique funds:

Total US Stock index
Total International Stock index
Total US Bond index
Int-Term Treasury index
Int-Term Tax-Exempt bond index

The different bond funds are used in taxable vs. college vs. tax-sheltered.

The 10 Boglehead principles can help guide you. Welcome again on the start of your DIY journey.
"We are not here to agree with you; we are here to provoke thoughtfulness." Unknown Boglehead

Topic Author
Lalamimi
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Joined: Mon Jun 24, 2019 4:22 pm

Re: Financial planning now that retired

Post by Lalamimi » Thu Jun 27, 2019 3:21 pm

thank you! Yes, I agree it has gone on too long with EJ. Over 20 years I think. I am reading, Bogle book just arrived today. Don't want to go from the fire into the frying pan. look into Vanguard also. Now that retired, can spend time on this.

Topic Author
Lalamimi
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Joined: Mon Jun 24, 2019 4:22 pm

Re: Financial planning now that retired

Post by Lalamimi » Thu Jun 27, 2019 8:37 pm

bloom2708 wrote:
Thu Jun 27, 2019 9:19 am
Welcome!

Spend 30 or 60 or 90 days here "reading up". Go slow. A plan will form. Fees are the key.

I think you need to dig deeper on your Edward Jones fees. I think you are (way) under estimating the fees. You should write down the Expense Ratio and 12b-1 fees for each fund. Also note if you have Class A shares or Class C shares. Guided Solutions has a (typical) 1.3% Assets Under Management fee.



All of the funds in the larger IRA are Class A. The 12b-1 fee is 1.25

Topic Author
Lalamimi
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Joined: Mon Jun 24, 2019 4:22 pm

Re: Financial planning now that retired

Post by Lalamimi » Fri Jun 28, 2019 1:42 pm

Duckie wrote:
Tue Jun 25, 2019 5:09 pm
Lalamimi wrote:But we could use some direction on our investments with Edward Jones. I also have an account with Fidelity and could purchase ETFs once I figure those out.
My advice? Liquidate and transfer His IRA #1, His IRA #2, and Her IRA from Edward Jones to Fidelity. Combine his two IRAs into one.


How much of the 15% taxable is for living expenses and how much is for investing?
50/50

What is your desired Asset allocation?
What are all the options in her 401k? List the fund names, ticker symbols, and plan expense ratios.
INVS DIVRS DIVD R5 (DDFIX) .530%
FID MID CAP IDX (FSMDX) .025%
J H ENTERPRISE N (JDMNX) .66%
VICTORY S ESTB VAL I (VEVIX .59%
DFA US TARGET VALUE (DFFVX) .37%
FID SMALL CAP GROWTH (FCPGX) 1.02%
VANG SM CAP IDX ADM (VSMAX) .005%
AF CAP WORLD G&I R6 (RWIGX) .44%
AF NEW WORLD R6 (RNWGX) .62%
FID INTL INDEX (FSPSX) .035%
FID OVERSEAS K (FOSKX) .86%
COL BALANCED I3 (CBDYX) .60%
VANG TARGET RET 2015 (VTXVX) .13%
VANG TARGET RET 2020 (VTWNX) .13%
VANG TARGET RET 2025 (VTTVX) .13%
VANG TARGET RET 2030 (VTHRX) .14%
VANG TARGET RET 2035 (VTTHX) .14%
VANG TARGET RET 2040 (VFORX) .14%
VANG TARGET RET 2050 (VFIFX) .15%
VANG TARGET RET 2045 (VTIVX) .15%
VANG TARGET RET 2055 (VFFVX) .15%
VANG TARGET RET 2060 (VTTSX) .15%
VANG TARGET RET INC (VTINX) .12%
BAIRD CORE PLUD INST (BCOIX) .30%
FID US BOND IDX (FXNAX) .025%

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Tyler Aspect
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Re: Financial planning now that retired

Post by Tyler Aspect » Fri Jun 28, 2019 1:54 pm

I do not see a broad market US stock index fund in your 401k fund selections. In this case, holding a target retirement fund that is closest to the current year (TR 2020) will be close to 50% stock / 50% bond allocation.
Past result does not predict future performance. Mentioned investments may lose money. Contents are presented "AS IS" and any implied suitability for a particular purpose are disclaimed.

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elpollo
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Re: Financial planning now that retired

Post by elpollo » Fri Jun 28, 2019 2:07 pm

it all get complicated enough, that I doubt most fee-only fiduciary financial planners would sort something out for less than a few thousand dollars, might have some work to do on getting it manageable for what you can change-control:

https://www.bogleheads.org/wiki/Boglehe ... simplicity

https://www.bogleheads.org/wiki/Taxatio ... y_benefits

https://www.bogleheads.org/wiki/Retirem ... d_spending
https://www.bogleheads.org/wiki/Retiree_Portfolio_Model
Discussions should be conducted without fondness for dispute or desire for victory. - Benjamin Franklin

miket29
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Re: Financial planning now that retired

Post by miket29 » Fri Jun 28, 2019 3:47 pm

Tyler Aspect wrote:
Wed Jun 26, 2019 2:16 am
Other people have commented about the possibility of transferring from Edward Jones to Fidelity. I would like to mention the possibility of transferring to Vanguard, because Vanguard's offering of balanced funds and money market funds are somewhat better than Fidelity.

50% stock / 50% bond is a common asset allocation target for retired investors. You could meet that target with balanced funds. Within an IRA account you could hold half in Vanguard LifeStrategy Conservative Growth, half in Vanguard Balanced Index. That would be a 50% stock / 50% bond position.
Agree with looking into Vanguard as well as Fidelity. With your low 7-figures portfolio you could be a Flagship client (which requires $1 million or more in Vanguard funds & ETFs). This would give you access to a Certified Financial Planner to ask specific questions. Vanguard offers an advising service that charges 0.30% annually, but as a Flagship client you can annually get a free copy of the allocation the advising service would use and do it yourself.

As for 50:50, opinions differ. Rick Ferri (who occasionally posts here) advises a 70:30 portfolio of bond:equities for those near and in early retirement. See https://www.forbes.com/sites/rickferri/ ... r-retirees The big risk for this group is called sequence-of-returns risk. A few bad years at the start of retirement can dig a big hole in a retirement portfolio and lead to the risk of running out of money.

However a problem with blanket advice is circumstances differ. You didn't say what your annual expenses are. This plays a big role in deciding how much stock exposure you should have. I agree with what William Bernstein wrote in his book "Rational Expectations" (another book worth reading) in which he talks about the aim before retiring should be to accumulate a Liability Matching Portfolio, a portfolio sufficent to cover Residual Living Expenses (RLE). These are the expenses left to cover your basic living expenses after taking into account Social Security, pensions, etc. You want to be conservative with the portion of the portfolio needed for this and perhaps assume a sustainable lower withdrawal rate such as 3% that Larry Swedroe recommends instead of the 4% that had been a traditional assumption. But if you invest enough at a 3% withdrawal rate to cover your RLE (perhaps investing it 70:30 or even more conservatively as Bernstein suggests) you can take greater risk if you wish with the remainder.

If you are interested there have been earlier conversations on the forum about the advice mentioned above from Ferri, Bernstein, Swedroe and about sequence-of-returns that you can find by searching on the forum.

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Tyler Aspect
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Re: Financial planning now that retired

Post by Tyler Aspect » Fri Jun 28, 2019 5:43 pm

The idea of rising equity glide path is controversial. The proponents suggest retirees might be tempted into a panic sell if a recession hits early in the retirement, and that a 30% stock / 70% bond allocation is a solution. The critics would say such a move only moves the pressure point later in life when such a panicky retiree would balk in increasing stock allocation. I probably fall into the critics camp, feeling the rising equity glide path has not received enough vetting to be deployed for real.

viewtopic.php?t=262636

My own personal opinion is in the flat allocation camp, neither increasing nor decreasing. The only adjustment is a plus / minus 10% allocation based on current price / earning ratio. This is only my personal take. I am not sure of a definitive research paper in favor of P/E based adjustment.
Past result does not predict future performance. Mentioned investments may lose money. Contents are presented "AS IS" and any implied suitability for a particular purpose are disclaimed.

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Duckie
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Re: Financial planning now that retired

Post by Duckie » Fri Jun 28, 2019 5:54 pm

Lalamimi wrote:
Duckie wrote:What are all the options in her 401k? List the fund names, ticker symbols, and plan expense ratios.
INVS DIVRS DIVD R5 (DDFIX) .530%
<snip>
FID US BOND IDX (FXNAX) .025%
This list of your 401k options has some good index funds:
  • FID MID CAP IDX (FSMDX) .025% -- Mid caps, 6% of US stocks
  • VANG SM CAP IDX (VSMAX) .005% -- Small caps, 14% of US stocks
  • FID INTL IDX (FSPSX) .035% -- Developed markets, 75% of international stocks
  • FID US BOND IDX (FXNAX) .025% -- US bonds
It also has the target-date funds. It does not have a large-cap index fund, but your opening post showed you already owned FID 500 IDX (FXAIX) .015% in the 401k which covers the 80% of US stocks in large caps. So you could use some of the index options in the 401k. However, since you're both retired, I would simplify your portfolio by rolling her 401k into her TIRA (once moved from Edward Jones).
_______________________

You didn't mention a preferred AA so the following portfolio example has an AA of 60% stocks, 40% bonds, with 30% of stocks in international. That breaks down to 42% US stocks, 18% international stocks, and 40% bonds. After removing one-half of the taxable account for living expenses and refiguring the percentages, and after combining and rolling all your accounts to Vanguard or Fidelity, you could have:

Portfolio #1 at Vanguard:

Taxable at Vanguard -- 8%
8% (VTSAX) Vanguard Total Stock Market Index Fund Admiral Shares (0.04%)

His Traditional IRA at Vanguard -- 51%
13% (VTSAX) Vanguard Total Stock Market Index Fund Admiral Shares (0.04%)
18% (VTIAX) Vanguard Total International Stock Index Fund Admiral Shares (0.11%)
20% (VBTLX) Vanguard Total Bond Market Index Fund Admiral Shares (0.05%)

Her Traditional IRA at Vanguard -- 41%
21% (VTSAX) Vanguard Total Stock Market Index Fund Admiral Shares (0.04%)
20% (VBTLX) Vanguard Total Bond Market Index Fund Admiral Shares (0.05%)

or

Portfolio #2 at Fidelity:

Taxable at Fidelity -- 8%
8% (FSKAX) Fidelity Total Market Index Fund (0.015%)

His Traditional IRA at Fidelity -- 51%
13% (FSKAX) Fidelity Total Market Index Fund (0.015%)
18% (FTIHX) Fidelity Total International Index Fund (0.06%)
20% (FXNAX) Fidelity U.S. Bond Index Fund (0.025%)

Her Traditional IRA at Fidelity -- 41%
21% (FSKAX) Fidelity Total Market Index Fund (0.015%)
20% (FXNAX) Fidelity U.S. Bond Index Fund (0.025%)

Just some possibilities.

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Earl Lemongrab
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Re: Financial planning now that retired

Post by Earl Lemongrab » Sat Jun 29, 2019 12:53 pm

I would double-check that list. It's unusual for a plan to have all of those low-cost index funds but not an S&P or similar fund.

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ruralavalon
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Re: Financial planning now that retired

Post by ruralavalon » Sun Jun 30, 2019 7:35 am

Welcome to the forum :D .
Lalamimi wrote:
Mon Jun 24, 2019 8:04 pm
I was laid off last March, and we sold a house on some acreage, thus have been able to delay drawing social security. Thus, no income this year, but too much cash in our Money Market. Thoughts on converting some from his IRA to a Roth during low tax bracket year?
If you really have no income this year, then convert some of the IRA money to a Roth IRA. You might consult with a CPA to decide how much to convert.

Lalamimi wrote:
Tue Jun 25, 2019 2:52 pm
. . . one wanted to sell us an annuity for 1/3 of our investments, . . .
Avoid annuity salesmen, who try to sell expensive (complex, high fee, high commission) annuities as some kind of investment. Those are a better deal for the salesman than for the purchaser.

If you are interested in an annuity then you could consider a plain vanilla, inexpensive Single Premium Immediate Annuity (SPIA), for rates see: www.immediateannuities.com.


Rollover, selection of fund firm.
Rollover his two IRAs to a low-cost provider like Vanguard, Fidelity or Schwab. If you have no plans to return to work after the layoff, then you could also rollover your 401k to an IRA at one of those low-cost providers.

Take your time, there is no rush. Any of those fund firms is much better than Edward Jones or Ameriprise. For funds and location of accounts I usually suggest
1) Vanguard,
2) Fidelity, or
3) Schwab
in that order of preference.

I prefer using traditional mutual funds (rather than ETFs), and Vanguard has by far the largest selection of low expense traditional mutual funds offered anywhere. Both Vanguard and Fidelity have a larger selection of low expense index funds than does Schwab. We have all of our investing accounts at Vanguard, and use only Vanguard index funds.

Vanguard has by far the largest array of no transaction fee ETFS. In addition to its own ETFs Vanguard offers roughly 1800 commission free ETFs of other firms including those of Schwab, State Street (SPDR) and BlackRock (iShares). Kiplinger (07/02/2018), "Vanguard to Ditch Commissions on Most ETFs".

Fidelity offers banking services like their Cash Management Account (CMA), Schwab also offers some banking services. Vanguard does not offer banking services. I prefer a bank for banking functions. For banking functions (checking account, debit card, credit cards) we use a bank with a branch near our home.

I like Vanguard's mutual structure, Vanguard is owned by the Vanguard funds, has no other shareholders, and so conflicts of interest with shareholders don't exist.

Both Fidelity and Schwab have local customer service offices in some cities, but Vanguard does not. None have a local office near me, so that was not a factor in my choice.

A local customer service office is important for some, but in my opinion not at all necessary. We have had no problems with the rare phone consultations that were necessary. I call Vanguard once per year at most, some years not at all, and always received prompt, accurate, professional advice and service.

Once a reasonable investing plan is set up, it requires almost no attention. Some people prefer the customer service at Fidelity or Schwab.

Schwab does not offer a total international stock index fund, both Vanguard and Fidelity do. (At Schwab you need to use multiple ETFs to get total international stock coverage.) Vanguard stock index funds are more tax-efficient, which is important if using a taxable account. Vanguard offers a larger selection of tax-exempt bond funds (including state specific funds) than either Schwab or Fidelity, which is important if using a taxable account and in a high tax bracket. Vanguard offers a small-cap value index fund, but Schwab and Fidelity do not, which is important if interested in value investing. Vanguard money market funds (including the sweep fund) pay a better return than funds at Fidelity or Schwab, which is important for investors who desire a significant cash allocation.

Fidelity and Schwab have no initial minimum investment required, which is helpful for a new investor with a small amount to invest. Most Vanguard funds require an initial minimum investment of $3k, or just $1k for target retirement funds or Vanguard STAR Fund (VGSTX).

There is a lot of personal preference involved in selecting a firm for your accounts.

Once You pick a new provider, just call or visit them and they will help with the rollovers of your accounts.



Advisory services.
Here is a guide to help in deciding if you want or need an advisor: "The great paradox of using an advisor is that you must know some basics in order to evaluate the advice, and once you do, you also know enough to consider doing your own management." "Chapter 10 – On Your Own or Hire an Advisor".

Two links for finding an advisor:
http://www.napfa.org/consumer/index.asp
http://www.garrettplanningnetwork.com/


Asset allocation.
At ages 65 and 67, retired, I suggest about 40-50% in bonds or other fixed income investments (like CDs, SPIA, savings accounts, money market fund). This is expected to substantially reduce portfolio volatility (risk). Graph, "An Efficient Frontier: the power of diversification". Please see:
1) Wiki article Bogleheads® investment philosophy, part 3 "Never bear too much or too little risk"; and
2) Wiki article, "Asset allocation".

I suggest around 20 - 30% of stocks in international stocks. Vanguard paper (March 2012), "Considerations for investing in non-U.S. equities". Historically, allocating 20% of an equity portfolio to non-U.S. stocks would have captured about 84% of the maximum possible diversification benefit, and allocating 30% of an equity portfolio to non-U.S. stocks would have captured about 99% of the maximum possible diversification benefit (p. 6). (You can find lots of debate here on international allocation, opinions ranging all the way from 00% to 50% of stocks in international stocks. If you want more viewpoints on international stocks please try the Google search box, upper right, this page).

Asset allocation is a very personal decision. You must decide on an allocation that is comfortable for you based on your own ability, willingness and need to take risk.



Fund selection.
In selecting funds strive for a combination of broad diversification (to reduce risk) and low expense ratios (to increase your net return). To simply and easily achieve those two goals I suggest choosing funds to simulate the very well diversified, low expense ratio "three-fund portfolio". Please see:
1) Wiki article "Three-fund portfolio";
2) Forum discussion, "The Three-Fund Portfolio"; and
3) Taylor Larimore post, "Articles recommending the three-fund portfolio".

Duckie have you good fund ideas from Vanguard and Fidelity.


Additional reading.
I suggest that you read one or two books on investing. Wiki article, "Books: recommendations and reviews". When I first stated managing my own investments, I found this tutorial very helpful in learning investing terminology/jargon and some of the investing basics. Morningstar, "Investing Classroom". Also take a look at the Boglehead’s wiki, the "getting started" link I give below.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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nedsaid
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Re: Financial planning now that retired

Post by nedsaid » Sun Jun 30, 2019 11:44 am

Lalamimi wrote:
Thu Jun 27, 2019 3:21 pm
thank you! Yes, I agree it has gone on too long with EJ. Over 20 years I think. I am reading, Bogle book just arrived today. Don't want to go from the fire into the frying pan. look into Vanguard also. Now that retired, can spend time on this.
I like to chime in on these type of threads but will limit comments here as you have received spectacularly great advice from Duckie, Ruralavalon, and others here. You can probably do all of this yourself but the fact that you have been seeing wealth management firms tells me that you would like professional advice. You might consider utilizing the Vanguard Personal Advisory Service at a cost of 0.30% Assets Under Management fee plus the very small expense ratios of the index funds. You can always drop VPAS at whatever point you decide you can do this on your own.

If you go with Fidelity or Schwab, keep in mind that you could be gently steered towards an advisor that would perform portfolio management for you. This is the more expensive route though Fidelity and Schwab also have cheap Robo-Advisor services. Schwab will get you into a more complex portfolio through their robo service, Schwab will also have a portion of the portfolio in cash. You can invest very cheaply at both places and sales pressure will be pretty minimal. I met with a Fidelity advisor and he gently suggested their Wealth Management service and annuity products but no real sales pressure.
A fool and his money are good for business.

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Lalamimi
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Re: Financial planning now that retired

Post by Lalamimi » Fri Jul 05, 2019 4:11 pm

miket29 wrote:
Fri Jun 28, 2019 3:47 pm
Tyler Aspect wrote:
Wed Jun 26, 2019 2:16 am
Other people have commented about the possibility of transferring from Edward Jones to Fidelity. I would like to mention the possibility of transferring to Vanguard, because Vanguard's offering of balanced funds and money market funds are somewhat better than Fidelity.

However a problem with blanket advice is circumstances differ. You didn't say what your annual expenses are. This plays a big role in deciding how much stock exposure you should have. I agree with what William Bernstein wrote in his book "Rational Expectations" (another book worth reading) in which he talks about the aim before retiring should be to accumulate a Liability Matching Portfolio, a portfolio sufficent to cover Residual Living Expenses (RLE). These are the expenses left to cover your basic living expenses after taking into account Social Security, pensions, etc. You want to be conservative with the portion of the portfolio needed for this and perhaps assume a sustainable lower withdrawal rate such as 3% that Larry Swedroe recommends instead of the 4% that had been a traditional assumption. But if you invest enough at a 3% withdrawal rate to cover your RLE (perhaps investing it 70:30 or even more conservatively as Bernstein suggests) you can take greater risk if you wish with the remainder.

If you are interested there have been earlier conversations on the forum about the advice mentioned above from Ferri, Bernstein, Swedroe and about sequence-of-returns that you can find by searching on the forum.
thank you, I will do some digging.

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Lalamimi
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Re: Financial planning now that retired

Post by Lalamimi » Sat Jul 06, 2019 9:11 pm

Duckie wrote:
Fri Jun 28, 2019 5:54 pm

or

Portfolio #2 at Fidelity:

Taxable at Fidelity -- 8%
8% (FSKAX) Fidelity Total Market Index Fund (0.015%)

His Traditional IRA at Fidelity -- 51%
13% (FSKAX) Fidelity Total Market Index Fund (0.015%)
18% (FTIHX) Fidelity Total International Index Fund (0.06%)
20% (FXNAX) Fidelity U.S. Bond Index Fund (0.025%)

Her Traditional IRA at Fidelity -- 41%
21% (FSKAX) Fidelity Total Market Index Fund (0.015%)
20% (FXNAX) Fidelity U.S. Bond Index Fund (0.025%)

Just some possibilities.

We met for 2 hours with Fidelity 1) pitched the Wealth Management program for .79% management fee, 2) advised to start drawing SS now, and 3) do make the Roth IRA conversion as mentioned above. My BIL talked me out of signing up, and has suggested moving all to Ameritrade (he knows its website extensively and can assist us with learning it, and has a good (free) advisor there), then liquidate the higher fee and any low performing MFs (I want to liquidate 5 or 6 while still at EJ (holding the cash in the IRA) but reading post above it is advised to wait until transferred) and be ready with that cash ( $20K-80K) to invest when the market dips. In the meantime, I would research everyones suggestions as to the Fidelity and Vanguard low fee funds (BIL will not pick for me but will advise if asked - He is way out of my league $$$ wise and only invests in stocks). What are thoughts on Ameritrade without any management? Would their $6.95 per trade fee offset any savings once I start exchanging or buying funds? They are currently offering up to $600 for new account and 60 days of commission free trading. AA suggested by Fidelily - US Stock, 35%, Foreign Stock 15%, Bonds 35%, Short term 10%. Looks like 3-4 good funds in 3 IRAs would do that when the dust settles. Thank you.

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Duckie
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Re: Financial planning now that retired

Post by Duckie » Sun Jul 07, 2019 4:12 pm

Lalamimi wrote:We met for 2 hours with Fidelity 1) pitched the Wealth Management program for .79% management fee, 2) advised to start drawing SS now, and 3) do make the Roth IRA conversion as mentioned above. My BIL talked me out of signing up,
Good. You don't need management. However.....
and has suggested moving all to Ameritrade (he knows its website extensively and can assist us with learning it, and has a good (free) advisor there),
TD Ameritrade has limited low-cost mutual funds/ETFs with NTFs (no transaction fees). If you want mutual funds then TDA is not the best place.
In the meantime, I would research everyones suggestions as to the Fidelity and Vanguard low fee funds
You can get the Fidelity and Vanguard mutual funds at TDA but you'll have to pay a commission for each purchase/sale.
What are thoughts on Ameritrade without any management?
If going without management why not Fidelity or Vanguard? If you're going to have to learn the website anyway, why TDA?
Would their $6.95 per trade fee offset any savings once I start exchanging or buying funds?
Maybe, if you don't buy often. I just looked at TD Ameritrade's NTFs (no-transaction fees) funds and ETFs. Their funds aren't good but there are a few good ETFs (SPTM, SPDW, SPAB).
They are currently offering up to $600 for new account and 60 days of commission free trading.
Well, that would cover all the initial selling and buying. But you'd have to finish within 60 days, not waiting until the market dips.
AA suggested by Fidelily - US Stock, 35%, Foreign Stock 15%, Bonds 35%, Short term 10%.
An AA of 50/50 is reasonable.
Looks like 3-4 good funds in 3 IRAs would do that when the dust settles.
What is the third IRA? Is that the new Roth IRA?

neilpilot
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Re: Financial planning now that retired

Post by neilpilot » Sun Jul 07, 2019 4:52 pm

Duckie wrote:
Sun Jul 07, 2019 4:12 pm

TD Ameritrade has limited low-cost mutual funds/ETFs with NTFs (no transaction fees). If you want mutual funds then TDA is not the best place.


All of my investments are held at TDA and all are Vanguard funds, primarily ETFs. I rarely trade, except to adjust AA biannually if required. All dividends are reinvested commission free.

If you have a similar trading profile you collect TDA’s new account bonus, invest in Vanguard ETFs and it will take years before the commissions exceed the bonuses you’ve collected. In my case I will likely never pay a net commission to TDA.

Topic Author
Lalamimi
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Re: Financial planning now that retired

Post by Lalamimi » Sun Jul 07, 2019 7:44 pm

What is the third IRA? Is that the new Roth IRA?
Yes,

Thanks to you both.

Topic Author
Lalamimi
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Re: Financial planning now that retired

Post by Lalamimi » Sun Jul 07, 2019 7:49 pm

neilpilot wrote:
Sun Jul 07, 2019 4:52 pm
Duckie wrote:
Sun Jul 07, 2019 4:12 pm

TD Ameritrade has limited low-cost mutual funds/ETFs with NTFs (no transaction fees). If you want mutual funds then TDA is not the best place.


All of my investments are held at TDA and all are Vanguard funds, primarily ETFs. I rarely trade, except to adjust AA biannually if required. All dividends are reinvested commission free.

If you have a similar trading profile you collect TDA’s new account bonus, invest in Vanguard ETFs and it will take years before the commissions exceed the bonuses you’ve collected. In my case I will likely never pay a net commission to TDA.

Thinking leave the money in some of the EJ selected MFs for the time being, then slowing go with ETF when the market is right. I would prefer to end up with all ETFs for the long haul. Still learning, thank you for the info. Since Market is stable now, I am not in a rush, but want to be ready.

Boatguy
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Re: Financial planning now that retired

Post by Boatguy » Sun Jul 07, 2019 10:12 pm

Regarding SS, just want to make sure that you’ll be turning 66 before the end of this year. Otherwise, you can’t file for spousal benefits without filing for your own. Who will be getting the higher SS payout by waiting until age 70? That should play a role in your decision as to who files first.

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ruralavalon
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Re: Financial planning now that retired

Post by ruralavalon » Mon Jul 08, 2019 8:28 am

Lalamimi wrote:
Sun Jul 07, 2019 7:49 pm
neilpilot wrote:
Sun Jul 07, 2019 4:52 pm
Duckie wrote:
Sun Jul 07, 2019 4:12 pm

TD Ameritrade has limited low-cost mutual funds/ETFs with NTFs (no transaction fees). If you want mutual funds then TDA is not the best place.


All of my investments are held at TDA and all are Vanguard funds, primarily ETFs. I rarely trade, except to adjust AA biannually if required. All dividends are reinvested commission free.

If you have a similar trading profile you collect TDA’s new account bonus, invest in Vanguard ETFs and it will take years before the commissions exceed the bonuses you’ve collected. In my case I will likely never pay a net commission to TDA.

Thinking leave the money in some of the EJ selected MFs for the time being, then slowing go with ETF when the market is right. I would prefer to end up with all ETFs for the long haul. Still learning, thank you for the info. Since Market is stable now, I am not in a rush, but want to be ready.
It is a mistake to stay at Edward Jones for any period of time. Their fees are awful.

How will you become ready?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

BlueRidgePro
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Re: Financial planning now that retired

Post by BlueRidgePro » Mon Jul 08, 2019 9:42 am

Don't pay anyone for advice. Do a little research on 3 or 4 fund lazy portfolios of funds. There is a lot posted here and elsewhere. Move your money to Fidelity or Vanguard in a few no-load bond and equity index funds from your research. Then relax and enjoy retirement.

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BL
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Re: Financial planning now that retired

Post by BL » Mon Jul 08, 2019 11:34 am

nedsaid wrote:
Sun Jun 30, 2019 11:44 am
Lalamimi wrote:
Thu Jun 27, 2019 3:21 pm
thank you! Yes, I agree it has gone on too long with EJ. Over 20 years I think. I am reading, Bogle book just arrived today. Don't want to go from the fire into the frying pan. look into Vanguard also. Now that retired, can spend time on this.
I like to chime in on these type of threads but will limit comments here as you have received spectacularly great advice from Duckie, Ruralavalon, and others here. You can probably do all of this yourself but the fact that you have been seeing wealth management firms tells me that you would like professional advice. You might consider utilizing the Vanguard Personal Advisory Service at a cost of 0.30% Assets Under Management fee plus the very small expense ratios of the index funds. You can always drop VPAS at whatever point you decide you can do this on your own.

If you go with Fidelity or Schwab, keep in mind that you could be gently steered towards an advisor that would perform portfolio management for you. This is the more expensive route though Fidelity and Schwab also have cheap Robo-Advisor services. Schwab will get you into a more complex portfolio through their robo service, Schwab will also have a portion of the portfolio in cash. You can invest very cheaply at both places and sales pressure will be pretty minimal. I met with a Fidelity advisor and he gently suggested their Wealth Management service and annuity products but no real sales pressure.
+1
I would trust Vanguard not to sell expensive products or management. Their PAS advisors (0.3%/year fee) may be willing to tell you exactly what they recommend before you even commit to using them. That gives you another point of information.

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Lalamimi
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Re: Financial planning now that retired

Post by Lalamimi » Mon Jul 08, 2019 5:08 pm

Thank you. I will talk to Van Guard next.

Topic Author
Lalamimi
Posts: 26
Joined: Mon Jun 24, 2019 4:22 pm

Re: Financial planning now that retired

Post by Lalamimi » Tue Jul 09, 2019 9:04 am

Boatguy wrote:
Sun Jul 07, 2019 10:12 pm
Regarding SS, just want to make sure that you’ll be turning 66 before the end of this year. Otherwise, you can’t file for spousal benefits without filing for your own. Who will be getting the higher SS payout by waiting until age 70? That should play a role in your decision as to who files first.
Yes, My Dec 30 birthday finally will pay off! My monthly SS at 70 will be larger, (by about $300) and we feel his drawing 2 yrs early and my collecting 50% of same for 4 yrs will balance out waiting on his to increase. Plus gives us cash without having to draw on our IRAs.

Boatguy
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Re: Financial planning now that retired

Post by Boatguy » Tue Jul 09, 2019 1:58 pm

Timing is everything! Congrats.

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dratkinson
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Location: Centennial CO

Re: Financial planning now that retired

Post by dratkinson » Tue Jul 09, 2019 3:45 pm

I'll leave you in your current capable hands in dealing with your present situation.


I'll only add some recommended books for dealing with the larger retirement picture. Get them from your local library. Can read them much later, after you resolve your present situation.

--Retirement planning.
The Bogleheads' Guide to Retirement Planning, and/or
How to Make Your Money Last, Quinn

--Estate planning.
Beyond the Grave, Condon



Welcome.
d.r.a, not dr.a. | I'm a novice investor, you are forewarned.

Topic Author
Lalamimi
Posts: 26
Joined: Mon Jun 24, 2019 4:22 pm

Re: Financial planning now that retired

Post by Lalamimi » Tue Jul 09, 2019 7:46 pm

Thanks everyone. I will be monitoring all posts.

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